(2)Percent
of students who complete a higher level mathematics class with a passing grade.

(3)Percent
of college readiness benchmarks met on a nationally normed test of college
readiness.

(4)Percent
of students who graduate within four years of entering high school.

(5)Percent
of students who demonstrate workplace readiness on a nationally normed test of
workplace readiness.

(d)The
State Board of Education shall calculate school performance scores using the
State mean to set the criteria for each indicator. Each indicator will be
translated to a common scale and averaged for the reporting of one school
performance letter grade for each school.

(e)For
schools that meet or exceed growth as determined by the Education Value-Added
Assessment System (EVAAS), the final letter grade shall be increased by one
value.

(f)For
schools serving students in third through eighth grade, their final letter
grade shall be increased by one letter grade if the performance composite,
comprising of the percent of proficient scores for reading, mathematics, and
science, is at or above eighty percent (80%) for the current year and the two
prior school years.

(g)For
schools serving students in ninth through twelfth grade, their final letter
grade shall be increased by one letter grade if the performance composite,
comprising of the percent of proficient scores for Algebra I/Integrated I,
English II, and Biology end-of-course tests, is at or above eighty percent
(80%) for the current year and the two prior school years.(h)In
calculating the overall school performance score earned by schools, the State
Board of Education shall proportionally adjust the scale to account for the
absence of a school performance element for award of scores to a school that
does not have a measure of one of the school performance elements annually
assessed for the grades taught at that school.

(i)The
State Board of Education shall report to the Joint Legislative Education
Oversight Committee annually by January 15 on any adjustments to the
calculation and the distribution of the school performance grades."

SECTION 3. G.S. 115C-12(9)c1. reads as
rewritten:

"c1. To issue an annual
"report card" for the State and for each local school administrative
unit, assessing each unit's efforts to improve student performance based on the
growth in performance of the students in each school and taking into account
progress over the previous years' level of performance and the State's
performance in comparison with other states. This assessment shall take into
account factors that have been shown to affect student performance and that the
State Board considers relevant to assess the State's efforts to improve student
performance. As a part of the annual "report card" for each local
school administrative unit, the State Board shall awardaward, in
accordance with G.S. 115C-83.11, an overall numerical school
performance score on a scale of zero to 100 and a corresponding letter grade of
A, B, C, D, or F earned by each school within the local school administrative
unit. The school performance score and grade shall reflect student performance
on annual subject-specific assessments, college and workplace readiness
measures, and graduation rates. For schools serving students in any grade from
kindergarten to eighth grade, separate performance scores and grades shall also
be awarded based on the school performance in reading and mathematics
respectively. The annual "report card" for schools serving students
in third grade also shall include the number and percentage of third grade
students who (i) take and pass the alternative assessment of reading
comprehension; (ii) were retained in third grade for not demonstrating reading
proficiency as indicated in G.S. 115C-83.7(a); and (iii) were exempt from
mandatory third grade retention by category of exemption as listed in
G.S. 115C-83.7(b)."

SECTION 4. This section is effective when it
becomes law and applies beginning with the 2013-2014 school year. The State
Board of Education shall issue the first annual report cards under
G.S. 115C-12(9)c1., as amended by this act, no earlier than August 1,
2014.